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ABC Ltd has identified an impairment loss of $1,8000 on one of its CGUs The...

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Accounting

ABC Ltd has identified an impairment loss of $1,8000 on one of its CGUs

The CGU consists of the following assets (stated at current carrying amounts):

Buildings 800,000

Equipment 200,000

Land 300,000

Fittings 150,000

The Recoverable Amount (FV-CD) of the building is $600,000

Required:

Calculate the allocation of impairment loss against all assets in the CGU. As the FV-CD of the building is $600,000, the maximum impairment loss that can be allocated to the building is limited to $200,0000.

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